136.506 Inapplicability of KRS 136.505 after January 1, 2021 -- Financial

149 words·~1 min read·/ky/136-506

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

institutions subject to corporation income tax, limited liability entity tax, and

applicable local government franchise taxes after January 1, 2021 -- Short-year

returns.

(1)Beginning January 1, 2021, the state bank franchise tax under KRS 136.505 shall no

longer apply to financial institutions.

(2)Beginning January 1, 2021, all financial institutions shall be subject to the

corporation income tax under KRS 141.040 and the limited liability entity tax under

KRS 141.0401. Notwithstanding KRS 141.040 and 141.0401, any financial

institution operating on a fiscal year basis shall file a short-year corporation income

and limited liability entity tax return and pay any tax due thereon for the period

beginning January 1, 2021, through the end of the financial institution's normal

fiscal year. The department may issue guidance regarding the filing of the short-year

return.

(3)Financial institutions shall be subject to all applicable local government franchise

taxes imposed under KRS 136.575.